Sold My Home Too Fast, Am I Stuck?
In this current market, homes are selling fast, and competition is everywhere. If your thinking about selling your home, please do your homework and think about more than just selling your home. Do you have a plan for once your home is sold? Are you planning to rent a home until you find the right home to buy? Did you already find another home you wish to purchase?
When a market is hot like this one, it is crucial that you and your agent are on the same page and working toward the same goal. Taking the time to talk with your agent can mean the difference between a great transaction and a bad one.
Even with a great plan, there can be a bump in the road. What are your options if your home sells too quickly? What are your options if the home you want to purchase doesn't work out?
One option could be to request a "rent back" from the buyer. A "rent-back" means the buyer will allow you to stay in your home for an agreed amount of time after the home sale closes. Usually, this situation would need to be discussed upfront and agreed to before an initial contract is signed. But hey, the market is moving fast, and it's not always easy to find that next home. If the buyer agrees to a "rent-back," you will be paying the buyer PITI, which means you will be paying their mortgage amount, not your old mortgage amount.
Another option would be to start looking at the market and see what is available now (Assuming you haven't already started looking). This option could be tricky if you do not have a lender that can close a loan faster or at the same pace as your home buyer. This option calls for streamlined action. Find a new home, make an acceptable offer and work to get the loan closed fast. Finding a new home after you are in a contract can be done, but if you have not already started looking for a home before you went into contract, you could be looking at an uphill battle.
Finally, you can always look for a short term rental option. The rental property will not be the perfect home or the home with the most upgrades, but it will keep you working toward a new home. Remember this rental is a short term option. Keep working toward that new goal of owning the home of your dreams. Even if your home sells faster than you are ready to move, there are options for you.